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Let's assume that thereare no trade barriers and exchange rates are freely fluctuating. At the same time, the European Union develops a technology that reduces the cost of production for most of their exporting products. Explain what will happen to their exports and imports while focusing on exchange rate, balance of trade and their financial account balance.

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M9474175

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